N-Q 1 a09-33910_1nq.htm N-Q

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number

811-22260

 

 

RMR ASIA PACIFIC REAL ESTATE FUND

(Exact name of registrant as specified in charter)

 

400 CENTRE STREET
NEWTON, MASSACHUSETTS

 

02458

(Address of principal executive offices)

 

(Zip code)

 

Adam D. Portnoy, President

RMR Asia Pacific Real Estate Fund

400 Centre Street

Newton, Massachusetts 02458

(Name and address of agent for service)

 

Copy to:

 

Frank J. DiPietro

State Street Bank and Trust Company

  2 Avenue De Lafayette, 4th Floor 

Boston, Massachusetts 02111

 

Julie A. Tedesco, Esq.

State Street Bank and Trust Company

4 Copley Place, 5th Floor

Boston, Massachusetts 02116

 

Registrant’s telephone number, including area code:

(617) 332-9530

 

 

Date of fiscal year end:

December 31

 

 

 

 

Date of reporting period:

September 30, 2009

 

 


 

RMR Asia Pacific Real Estate Fund

Portfolio of Investments  –  September 30, 2009 (unaudited)

 

Company

 

Shares

 

Value

 

Common Stocks – 97.0%

 

 

 

 

 

Australia – 14.6%

 

 

 

 

 

Diversified – 6.5%

 

 

 

 

 

Mirvac Group *

 

1,050,000

 

$

1,556,200

 

Stockland *

 

900,000

 

3,239,438

 

 

 

 

 

4,795,638

 

Office – 2.6%

 

 

 

 

 

Goodman Group *

 

3,210,000

 

1,883,188

 

Retail – 5.5%

 

 

 

 

 

Westfield Group *

 

330,000

 

4,046,651

 

Total Australia (Cost $9,612,804)

 

 

 

10,725,477

 

Hong Kong – 45.6%

 

 

 

 

 

Diversified – 26.1%

 

 

 

 

 

Agile Property Holdings, Ltd.

 

750,000

 

882,575

 

China Overseas Land & Investment, Ltd.

 

1,466,680

 

3,175,578

 

China Resources Land, Ltd.

 

831,000

 

1,818,538

 

Henderson Land Development Co., Ltd.

 

425,000

 

2,730,950

 

Hongkong Land Holdings, Ltd.

 

657,000

 

2,857,950

 

Hopson Development Holdings, Ltd.

 

500,000

 

869,672

 

Kerry Properties, Ltd.

 

285,000

 

1,540,829

 

New World Development Co., Ltd.

 

1,180,000

 

2,512,242

 

Shimao Property Holdings, Ltd.

 

925,000

 

1,568,313

 

Shui On Land, Ltd.

 

618,000

 

354,849

 

The Wharf (Holdings), Ltd.

 

153,000

 

812,375

 

 

 

 

 

19,123,871

 

Hospitality – 13.6%

 

 

 

 

 

Sun Hung Kai Properties, Ltd.

 

677,000

 

9,993,329

 

Retail – 5.9%

 

 

 

 

 

Hang Lung Properties, Ltd.

 

758,000

 

2,802,137

 

The Link REIT *

 

695,000

 

1,533,474

 

 

 

 

 

4,335,611

 

Total Hong Kong (Cost $30,575,536)

 

 

 

33,452,811

 

Japan – 26.5%

 

 

 

 

 

Diversified – 20.0%

 

 

 

 

 

Mitsubishi Estate Co., Ltd.

 

382,500

 

6,016,710

 

Mitsui Fudosan Co., Ltd.

 

318,000

 

5,381,184

 

Shoei Co., Ltd.

 

160

 

1,285

 

Sumitomo Realty & Development Co., Ltd.

 

180,000

 

3,294,603

 

 

 

 

 

14,693,782

 

Office – 6.5%

 

 

 

 

 

Nippon Building Fund, Inc. *

 

238

 

2,123,746

 

Nomura Real Estate Office Fund, Inc. *

 

195

 

1,296,886

 

Orix REIT, Inc. *

 

250

 

1,295,048

 

 

 

 

 

4,715,680

 

Total Japan (Cost $25,222,739)

 

 

 

19,409,462

 

Singapore – 10.3%

 

 

 

 

 

Diversified – 7.9%

 

 

 

 

 

Ascendas Real Estate Investment Trust *

 

1,103,000

 

1,511,227

 

Cambridge Industrial Trust *

 

3,195,000

 

1,031,999

 

CapitaLand, Ltd. *

 

1,242,000

 

3,279,906

 

 

 

 

 

5,823,132

 

Retail – 2.4%

 

 

 

 

 

CapitaMall Trust *

 

1,350,000

 

1,772,974

 

Total Singapore (Cost $7,822,539)

 

 

 

7,596,106

 

Total Common Stocks (Cost $73,233,618)

 

 

 

71,183,856

 

 

See notes to portfolio of investments.

 


 

Company

 

Shares

 

Value

 

Warrants – 2.5%

 

 

 

 

 

India – 2.5%

 

 

 

 

 

DLF, Ltd., Macquarie Bank, Ltd., expiring 6/26/12 (a)

 

94,500

 

$

859,950

 

Unitech, Ltd., Macquarie Bank, Ltd., expiring 5/29/13 (a)

 

413,000

 

920,990

 

Total Warrants (Cost $1,556,913)

 

 

 

1,780,940

 

Short-Term Investments – 2.4%

 

 

 

 

 

Other Investment Companies – 2.4%

 

 

 

 

 

Dreyfus Cash Management Fund, Institutional Shares, 0.22% (b) (Cost $1,793,495)

 

1,793,495

 

1,793,495

 

Total Investments – 101.9% (Cost $76,584,026)(c)

 

 

 

74,758,291

 

Other assets less liabilities – (1.9)%

 

 

 

(1,386,714

)

Net Assets – 100%

 

 

 

$

73,371,577

 

 

Notes to Portfolio of Investments

*

 

The company is organized as a real estate investment trust as defined by the laws of its country of domicile.

(a)

 

As of September 30, 2009, this security had not paid a distribution.

(b)

 

Rate reflects 7 day yield as of September 30, 2009.

(c)

 

Although subject to adjustments, the Fund’s investments for U.S. federal income tax purposes, as of September 30, 2009, are as follows:

 

 

 

 

 

Cost

 

$

76,584,026

 

 

 

 

 

 

 

 

 

 

 

Gross unrealized appreciation

 

$

 6,155,901

 

 

 

 

 

 

 

 

 

 

 

Gross unrealized depreciation

 

(7,981,636

)

 

 

 

 

 

 

 

 

 

 

Net unrealized depreciation

 

$

(1,825,735

)

 

 


 

Fair Value Measurements

 

The Fund reports the value of its securities at their fair value. Fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market for the investment. The Fund uses a three tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk; for example, the risk inherent in a particular valuation technique used to measure fair value including such a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three tier hierarchy of inputs used to prepare these financial statements is summarized below:

 

·                  Level 1 – quoted prices in active markets for identical investments.

·                  Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, credit risk, etc.).

·                  Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

 

Description

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Common Stocks

 

 

 

 

 

 

 

 

 

Australia

 

 

 

 

 

 

 

 

 

Diversified

 

$

4,795,638

 

$

—

 

$

—

 

$

4,795,638

 

Office

 

1,883,188

 

—

 

—

 

1,883,188

 

Retail

 

4,046,651

 

—

 

—

 

4,046,651

 

Total Australia

 

10,725,477

 

—

 

—

 

10,725,477

 

Hong Kong

 

 

 

 

 

 

 

 

 

Diversified

 

19,123,871

 

—

 

—

 

19,123,871

 

Hospitality

 

9,993,329

 

—

 

—

 

9,993,329

 

Retail

 

4,335,611

 

—

 

—

 

4,335,611

 

Total Hong Kong

 

33,452,811

 

—

 

—

 

33,452,811

 

Japan

 

 

 

 

 

 

 

 

 

Diversified

 

14,693,782

 

—

 

—

 

14,693,782

 

Office

 

4,715,680

 

—

 

—

 

4,715,680

 

Total Japan

 

19,409,462

 

—

 

—

 

19,409,462

 

Singapore

 

 

 

 

 

 

 

 

 

Diversified

 

5,823,132

 

—

 

—

 

5,823,132

 

Retail

 

1,772,974

 

—

 

—

 

1,772,974

 

Total Singapore

 

7,596,106

 

—

 

—

 

7,596,106

 

Total Common Stocks

 

71,183,856

 

—

 

—

 

71,183,856

 

Warrants

 

 

 

 

 

 

 

 

 

India

 

1,780,940

 

—

 

—

 

1,780,940

 

Total Warrants

 

1,780,940

 

—

 

—

 

1,780,940

 

Short-Term Investments

 

 

 

 

 

 

 

 

 

Other Investment Companies

 

1,793,495

 

—

 

—

 

1,793,495

 

Total Investments

 

$

74,758,291

 

$

—

 

$

—

 

$

74,758,291

 

 

The valuation techniques used by the Fund to measure fair value during the period ended September 30, 2009 maximized the use of observable inputs and minimized the use of unobservable inputs. When the S&P 500 Index (an unmanaged index published as Standard & Poor’s Composite Index of 500 common stocks) fluctuates significantly from the previous day close, the Fund believes that the closing price of foreign securities on the principal foreign exchange on which they trade may no longer represent the fair

 


 

value of these securities at the time the U.S. market closes and the Fund fair values its investment securities. Accordingly, in such circumstances, the Fund reports holdings in its foreign securities at their fair values as determined by an independent security pricing service. The service uses a multi-factor model that includes such information as the security’s local closing price, relevant general and sector indices, currency fluctuations, depository receipts and futures, as applicable. The model generates an adjustment factor for each security that is applied to the local closing price to adjust it for post closing events, resulting in the security’s reported fair value.

 

There were no investments in securities characterized as Level 3 as of December 31, 2008 or September 30, 2009.

 


 

Item 2.  Controls and Procedures.

 

(a)  The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)), are effective, as of a date within 90 days of the filing date of this report, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended.

 

(b)  There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3. Exhibits.

 

(a)(1) Certification of Principal Executive Officer, as required by Rule 30a-2(a) under the 1940 Act.

(a)(2) Certification of Principal Financial Officer, as required by Rule 30a-2(a) under the 1940 Act.

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

RMR ASIA PACIFIC REAL ESTATE FUND

 

By:

/s/ Adam D. Portnoy

 

 

Adam D. Portnoy

 

President

 

 

Date:

November 19, 2009

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

By:

/s/ Adam D. Portnoy

 

 

Adam D. Portnoy

 

President

 

 

Date:

November 19, 2009

 

 

By:

/s/ Mark L. Kleifges

 

 

Mark L. Kleifges

 

Treasurer

 

 

Date:

November 19, 2009